WHEN TO BUY A FARM.

Otago Witness, Issue 2762, 20 February 1907, Page 8

WHEN TO BUY A FARM.

This subject was suggested to me yesterday when in conversation with a man who has only been in the colony about two years. He has some little money, but. like a wise man, he followed the advice given to him to go to work on a farm until he gained some experience, and he has had a spell on all kinds of farms — sheep, dairy, and l agricultural. Now he tells me that he thinks of makinef a start dairy* ing anct pig-raising in the spring. He has got it into his head that pigs are what will pay the rent, and so they will if properly managed and attended to. But why wait until the spring? As there are always somo making a start farming on their own account, I will try and point out what I consider the advantages of starting in autumn instead of the spring. But, first, a word of warning to new beginners. Perhaps some may take notice of it : but I often find that many newehums and young 1 colonials think they know more than us " old 'uns," and look on our ideas with contempt, as being quite behind the times. We can hardly blame them, as I remember that away back in the last century I knew a great deal more than t do to-day. Still, these few sentences may be of value to some new beginners. The first question to consider is how much land the capital on hand will buy or lease — it matters little which ; the same principles apply to both leasehold and freehold. " Ca' canny," or go slow, is as applicable to farming as any other business, perhaps more so. Better to start with 50 acres and 20 cows with little or no debt, than 100 acres and 40 cows, although there aro plenty ready enough to finance the larger holding. The best advice to tender is, Go slow, keep well w ithin your means, until spu get strong on your legs. We may tase this as a general rule. Of course there are exceptions, and sometimes we see plungers get through on top : but more often they get stuck in the mire. There is always something, to be learned from the past, and on looking back 15 or 20 years, when the settlement of the bush lands was at its greatest, we find that the man who started on a small section well within his means is a wealthy man to-day, whereas many who bit more than they could chew, or started burdened with debt, went under. Looking round, we £cc the gr-eat majority of the' old settlers in affluent circumstances — men who for many years had a hard struggle to keep their head above water, and who would still have been stas:j?erin£r along under a burden of debt, if it had' not been for the development in the dairying industry and the abnormally high prices now ruling for every description of the products of the land. These are the causes ot tne <rreatly enhanced \a!uo of land. The groat danger at the proent juncture is that newcomers seeing the prosperous state of the old settlers may be enticed into launching out beyond their legitimate means and buying larger holdings- than they can manage. With regard, to buying- land; the position to-day is almost on all fours with what it was 20 years *go, but without much hopes of having such godsends as the advent of dairying ami wool aud mutton going up 100 jger cent. <3The new bestinner should therefore walk warily, as another dangerous enticement is put before him — money cheap arid plentiful compared -with what it was in years gone by- So that anything like a good man will be pre=sed by financial agents "to bite more than he can chew." As an object lesson, of which there are hundreds all over the North Island, take a farm of. say, 400 acres that could be bought in the '90's at £8 an acre fully improved — that is, felled, fenced, and decent buildings* on it, the grass being then at it« best, and carrying 1200 sheep. To-day the same farm would readily sell at £16 an acre, although only carrying 800 sheep. Farmers are loth to ! admit, that such is the case, but nevertheless it is a fact that bush land that has been in grass 15 or 20 years has on an average deteriorated 30 per oent. in its stock-cariying capabilities. The case, therefore, stands somewhat thus: — In the '90's the farm cost £3600 >vith 1200 sheep. To-day the same costs £7200. with only i 800 sheep. It therefore takes all the in-crea-sed value in meat and <*00l to pay what amounts to double the rent. JThe buyer to-day goes into a .'arm relatively in about the same position a-s the old settler did 20 years ago. Of course the nlrl settler who is holding on to his farm will be in a position to stand a cycle of lower prices should they cornf:, as his farm anly «tands him at £3600. But how about the" man who buys to-day at £7200. Ido riot wish to pose as a pessimistic prophet — in fact. I am perhaps too much of an jptimist, as I cannot ccc why there should be any great slump in the wool market, ♦eeingthat the statistical position could not be stronger, and there appears to be every hope of receiving good prices for butter a.nd meat for some time to come — still, after 40 years' experience of the colonial produce market, we cannot forget that slumps come when least expected. The foregoing I put forward as a word of ivarning to those with a small amount of capital, to bo careful and not «o beyond their means, and saddle themselves with », heavy "monkey" that gets heavier the worse times get. The man who can pay [.■ash, I take it, wants no advice. Now, as to the question which is the jest season of tho year to maJve a start with dairying or agricultural farming. I sonsider autumn is the best. We will take ;he case of one in the same position as the roung man, already mentioned, who has, i£s bit of .capital at call and wants to mrchase or lease a dairy farm. By aranaring to take possession in April or May le naa all the winter before hrtn to get hjngi shipshape and in good working irder, as there are always some things that rant amending, be the improvements never o good. Another advantage, and very ften a big" one, is that he will irobably buy his cowa 50 per oent. {

cheaper in the back end or during the winter than he would do in the spring, when they are oominsr into profit. Then again if pigs are to be a large factor in the venture, autumn 19 the time, as he can usually buy good breeding stock cheap, and arrange for them to produce suckers abaut the time the cows are coming into profit, whereas in the spring I in all probability he would have to pay an exorbitant price, so that there would bd , little or no profit. Against these advantages there would be the three or four , months extra rent. But I take it the • figures would about stand thus (say 100 ( acres with 30 cows, pigs, etc): — On the p»jr- . chase of the cows a saving of 30s per head, ] £45 ;" the rent for the four months being £33.. or a gain by the cows alone of £12, besides having all the winter to look round and see when to get the best cows. As for the pigs they would be absolutely a- free gift, as a few pounds spent in breeding sows would produce whatever number of suckers of good quality were required, for which he would have to pay from 12s to 16s in the spring. He would thus gain his living 1 expenses through the winter, and be fully prepared to start milking when the timo , came round. The question may be asked, [ How much money should a man have to j rent a dairy farm of 100 acres? I put it , thus (but, of course, prices fluctuate at times and in different districts) : — Thirty cows at £6 103, £195; four sows, £10; horse, milkcart, cans, etc., £40. If any cultivation can be done — and it should be done if there is to be done — and it should be done if there there would be wanted another horse, plough, harrows, etc., so that another £50 at least should be available ; which makes in all £235, or, in round numbers, £300,, besides enough to live on until the first milk cheque comes in. Anyone with that • amount of oapita-1, together with two I "good hands,*' not subject to "influenza" — I that is, "a tired feeling^, and not caring ! for work" — may be certain of good wages and big interest on the money invested — at least £200 after paying rent,' £100. With regard to taking over an agricultural farm, [ the same reasoning applies, only that th# early autumn is to be preferred; in fact, directly after harvest is the best time. So that the incoming tenant can put what ' crops he likos in. As to small sheep farms, it matters very little when taken over, as it is only a matter of finance. AXTIQUA OVIS.